Credit scoring models in risk assessment and the specifics of their application in banks of Uzbekistan

Abstract

In the context of constantly recurring global financial and economic crises, increasing competition, risks and uncertainties that shake the national financial systems, solving the problems of ensuring financial stability, solvency, and security of the banking sector is of great importance. The functions implemented by the banking system require the introduction and use of modern innovative financial technologies, which is especially important for developing economies, which include the Republic of Uzbekistan. The analysis of effective banking practices of foreign countries has shown that credit scoring models are a modern risk management tool that provides a qualitative assessment of the creditworthiness of borrowers. The level of development of the banking system of Uzbekistan in the conditions of the digital economy, the focus of the state, business and the population on the use of financial innovations allowed us to establish the features of the use of credit scoring models in risk assessment and formulate proposals to increase the capitalization, profitability and competitiveness of the subjects of the banking sector of the country.